Find the meanings of the most common Lodgify Payments terms you might come across while using it.
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Read about:
General
| Term | Definition |
| Account holder | The individual (or authorized representative) who owns or operates a credit or debit account. |
| ARN (Acquirer Reference Number) | A ARN number is a unique number provided from the card issuer after a refund has been done. This can be provided to your guest so they can provide this to their bank to trace the refund. |
| STAN (System Trace Audit Number) | A STAN number is a unique number provided from the card issuer after a refund has been done. This can be provided to your guest so they can provide this to their bank to trace the refund. |
| RRN (Retrieval Reference Number | A RRN number is a unique number provided from the card issuer after a refund has been done. This can be provided to your guest so they can provide this to their bank to trace the refund. |
| Acquirer (or acquiring bank) | A bank or financial institution that works with card networks to accept (“acquire”) or collect payments from the issuer on behalf of the merchant. |
| Alternative Payment Methods (APM) | Payment methods that do not use traditional debit or credit cards (e.g., e-wallets, bank transfers, mobile payments). |
| Booking Transaction ID | This is a unique reference number automatically generated for each booking payment. It helps identify and track the specific transaction in the payment system, making it easier to check payment status, handle refunds, or resolve disputes. |
| Auto direct debit | A setup where funds are withdrawn from a bank account to cover a negative balance. This negative balance may occur due to refunds issued or chargebacks received. The amount is normally withdrawn from your account two days after there is a negative balance on your account. |
| Domestic transaction | A transaction in which the card issuer, acquirer, and merchant are all located in the same country. |
| Dynamic currency conversion (DCC) | A service that allows the cardholder to pay in their home currency at the point of sale, provided they agree to the conversion. |
| Hard decline | A decline response from the card issuer indicating the card is invalid or the account is closed (e.g., due to theft or fraud). |
| Mobile payment | A payment made through a mobile device (e.g., smartphone or tablet), often using apps or mobile web interfaces. |
| Mobile wallet | A digital application or service that securely stores payment methods or electronic funds for use via a mobile device. |
| Near Field Communication (NFC) | A short-range wireless technology that enables data transfer between devices in close proximity, commonly used for contactless payments. |
| Payment gateway | A service that securely transmits transaction data between a merchant’s checkout system and the payment processor or acquiring bank. |
| Payment method | The form of payment offered by a merchant (e.g., credit card, debit card, e-wallet). |
| Payment processor | A company that handles transaction data and fund movements between merchants, issuing banks, and acquiring banks. |
| Payment system | The framework of laws, regulations, technologies, and standards that enable electronic and non-electronic payments. |
| Point of Sale (POS) | The hardware or software where a transaction is initiated, often referring to a physical terminal in a store. |
| Quick Response Code (QR) | A scannable two-dimensional barcode that can be used to access information or initiate payment. |
| Settlement | The process by which transaction funds are transferred from the acquirer to the merchant’s account, typically after fees are deducted. |
| Statement descriptor | The business name or the name you specify, which will appear on your guests' card statements. |
| Soft decline | A temporary decline response (e.g., insufficient funds, inaccurate card details, or a gateway error) that may be resolved by retrying or correcting information. |
| Third-party settlement | An arrangement in which a third party (other than the merchant) handles the settlement of funds, based on a three-party agreement. |
| Virtual Account Number (VAN) | A temporary or tokenized account number issued with a specified limit and validity period, often used to enhance security. |
Security and Protection
| Term | Definition |
| 3D Secure | An authentication protocol offered by card networks (e.g., Visa Secure, Mastercard SecureCode) to reduce fraud by verifying cardholder identity during online transactions. |
| Encryption | A process of converting data into a secure code to prevent unauthorized access. |
| Know Your Customer (KYC) | The process of verifying identities and assessing risk to ensure compliance and prevent fraud or money laundering. |
| Know Your Customer (KYB) | The process of verifying identities and assessing risk to ensure compliance and prevent fraud or money laundering. |
| Mastercard Secure Code | An extra layer of security (aligned with 3D Secure) offered by Mastercard to protect online transactions. |
| Payment Card Industry Data Security Standard (PCI DSS) | A set of comprehensive security standards ensuring that any entity accepting, processing, storing, or transmitting card data maintains a secure environment. |
| Reserve | A portion of merchant funds set aside by the payment provider to cover potential liabilities or losses. |
| Rolling reserve | A type of reserve where a percentage of each transaction is held back for a set period to offset potential losses or chargebacks. |
Fees
| Term | Definition |
| Blended fee | A fee that includes all basic services provided by Lodgify Payments; any additional charges are detailed. |
| Cross-border fees | Additional fees incurred when the card issuer and the merchant are located in different countries. |
| Chargeback fee | A $15.00 fee is incurred when a chargeback is initiated on a transaction. This fee is charged by Lodgify Payments. |
| Foreign exchange (FX or Forex) | The exchange of one currency for another, which may incur additional fees. |
Chargeback
| Term | Definition |
| Chargeback | A process in which the card network reviews disputed transactions and decides final liability between issuer and acquirer. |
| Countering a chargeback | Challenging the chargeback received by the card network by providing evidence to refute the claim. |
| Accepting a chargeback | Agreeing to return the disputed amount to the cardholder without challenging the chargeback or submitting evidence. |
| Chargeback withdrawal | When the guest decides to cancel the chargeback or contacts their bank to withdraw their previously submitted chargeback request. |
| Friendly fraud | A type of chargeback fraud in which a cardholder purchases goods or services but later disputes the charge to obtain a refund. |
| Presentment | The acquirer’s formal submission of a disputed transaction to the issuer for resolution. |
| Re-presentment | The process by which a merchant challenges a dispute, providing evidence to the issuing bank that the dispute is unwarranted. |
| Reversed chargeback | A chargeback that is overturned in favor of the merchant, returning the disputed funds to the merchant’s account. |
Card
| Term | Definition |
| Card association | A network or group of financial institutions (such as Visa or Mastercard) that issue credit and debit cards and set rules and standards for merchants, issuers, and acquirers. |
| Card brand | A payment network brand (e.g., Visa, Mastercard) that connects consumers, businesses, and banks to facilitate transactions. |
| Card issuer (or issuer) | A financial institution or authorized entity that issues credit or debit cards (physical or virtual) to cardholders. |
| Card Not Present (CNP) | A transaction in which the card is not physically present at the time of purchase (e.g., online or phone payments). |
| Card Verification Code (CVC) | A three-digit security code on the back of a Mastercard used to verify the card’s authenticity. |
| Card Verification Value (CVV) | A three-digit security code on the back of a Visa card used to verify the card’s authenticity. |
| Cardholder | The individual or entity to whom a credit or debit card is issued. |
| Commercial card | A card specifically issued for business-related expenses (e.g., corporate travel, entertainment). Commercial cards are frequently considred Premium. |
| Contactless payment | A payment made by tapping or waving a card or compatible device (e.g., phone, smartwatch) near a point-of-sale terminal using NFC technology. |
| Corporate card | A card provided by a business to executives or employees for authorized business expenses. Corporate cards are frequently considered Premium. |
| Credit card | A payment card that allows cardholders to borrow funds up to a set credit limit for purchasing goods and services. It may be used for online or in-person transactions and can be physical or virtual. |
| Debit card | A payment card that deducts funds directly from the cardholder’s bank account for online or in-person transactions. It may be physical or virtual. |
| Issuer (or issuing bank) | A financial institution or authorized entity that issues credit or debit cards to cardholders. |
| Personal Identification Number (PIN) | A numeric code used to authenticate the cardholder, commonly required for debit transactions or ATM use. |
| Premium card | A type of payment card (usually credit) that offers extra benefits or rewards, such as travel perks, cashback, or exclusive services. Examples include cards like Visa Infinite, Mastercard World Elite, and American Express Platinum. These cards often come with higher processing fees compared to standard cards. |
| Prepaid credit card | A card with a preloaded balance that can be used similarly to a credit card, up to the amount deposited. |
| Primary Account Number (PAN) | The unique number on a credit or debit card (typically the first 16 digits) that identifies the card brand and the specific cardholder account. |
Reconciliation and Reporting
| Term | Definition |
| Amex/Diners fee amount | The 1% fee charged for processing payments made with an American Express (Amex) Diners Club card. These cards typically have higher processing fees due to the additional benefits they offer, such as exclusive travel perks and rewards. |
| Booking ID | A unique number given to each booking that helps identify and track the reservation. |
| Domestic fee amount | The fee charged for processing a payment made with a card issued in the same country as the merchant’s payment account. |
| Fee ID | A unique reference number generated by the payment system to identify a specific fee (such as a processing fee, service fee, or chargeback fee) applied to a transaction. This ID helps track and reconcile fees in reports, statements, or when reviewing payment details. |
| International fee amount | The fee charged for processing a payment made with a card issued in a different country from the merchant’s payment account. This fee is usually higher than the domestic fee because it involves cross-border processing and may include additional network or currency costs. |
| Lodgify Payments fee | Fixed and variable fee charged per transaction. The total fee applied to each transaction, usually made up of two parts: fixed amount charged on transactions, regardless of the payment amount. A percentage-based fee calculated on the transaction amount. |
| Premium card fee amount | The 1% fee charged for processing a payment made with a premium or high-reward card, such as certain credit cards offering travel points, cash back, or corporate benefits. These cards typically have higher processing costs compared to standard cards, resulting in an additional fee. |
| Transaction date (UTC) | The date when the payment was processed or authorized by the payment system. This is the official date recorded for the transaction, which may be different from the booking date or payout date. |
| Transaction type | A label that shows what kind of transaction it is — for example, a payment, refund, payout, or chargeback. |
| Total fee amount | The complete fee charged for processing a transaction. This includes all applicable components, such as the fixed fee, variable (percentage-based) fee, premium card fees, international or cross-border fees, and any other additional charges applied to that payment. |